Is the fund split good or bad?
The split of fund shares can reduce the net value of fund shares by directly adjusting the number of fund shares, without affecting the realized expected income, unrealized income and paid-in funds. So is the fund split good or bad? We have compiled the following five points for you.
1, fund splitting will only reduce the net value.
Many investors are worried that the decline in unit net value after the split will affect the expected return, which is nothing to worry about and has no substantial adverse impact on investors' rights and interests.
2. Attract investors to invest
Many investors' investment strategy is to buy funds with low net worth, so as to gain more shares and redeem more money, because this psychology, if split, will attract more investors to buy.
3. Fund splitting can accurately adjust the net value of fund shares to 1 yuan.
However, it is difficult to accurately adjust the net value of fund shares to 1 yuan with a large proportion of dividends, which makes the fund split more accurate.
4. Fund split investors have no voting rights.
Unlike investing in stocks, fund splitting does not require a vote at the shareholders' meeting, and investors have no veto power and will be passive.
5. It may bring bad chain reaction to the holder.
On the one hand, there is the possibility of diluting the expected income of the original holder in fund splitting; On the other hand, the fund split makes the net value of the fund decline in the later period.
The above content about whether the fund split is good or bad is here, and I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.